DONG Energy Reports 1120% Increase in Net Profit

DONG Energy left 2016 with a net profit of DKK 12.2 billion (approx. EUR 1.6 billion) – DKK 11.2 billion (EUR 1.5 billion) higher than in 2015, when the company reported a net profit of DKK 1 billion (EUR 134 million). 

Image: DONG Energy

The increase was primarily due to higher EBITDA, DONG Energy said, which rose from DKK 8.7 billion (EUR 1.2 billion) in 2015 to DKK 19.1 billion (EUR 2.6 billion) in 2016 as a result of higher activity from construction contracts and gains from the divestment of 50% of two offshore wind farms, as well as one-off payments from completed renegotiations of gas purchase contracts.

The numbers are regarding continuing operations, since the company presented the Oil & Gas segment as discontinuing operations in the annual results for full-year 2016 as it plans to sell the activities by the end of 2017.

Commenting on the annual report, Henrik Poulsen, CEO and President, said: “The results for 2016 are highly satisfactory. We have delivered an underlying growth of 95% in operating profit (EBITDA), driven by strong growth in Wind Power.”

In 2016, DONG Energy’s earnings from its wind power business alone doubled to DKK 11.9 billion (EUR 1.6 billion) and for the first time exceeded earnings from oil and gas production.

The company’s investments totalled DKK 15 billion (EUR 2 billion) last year and were mostly made in the expansion of offshore wind. In 2017, DONG Energy expects to invest up to DKK 20 billion (EUR 2.7 billion) in offshore wind farms.